What are the total purchase costs?

About 6.5% of the price: 4% registration duties, 1.5% land registry, around 1% notary's fees plus VAT on those fees, and a few fixed costs.

Does VAT apply to a new villa?

Yes, at the rate of 20%, payable by the developer and included in the price inclusive of tax. Check on the contract that the stated price is indeed inclusive of all taxes.

How much does an unlet villa cost each year?

The housing tax (progressive scale on the rental value) and the municipal services tax (10.5% of the rental value in urban areas), with no allowance for a second home, plus the estate charges.

How is long-term rental income taxed?

At your option: a final withholding rate of 10% or 15% on gross rent depending on the MAD 120,000 threshold, or the progressive scale after a 40% allowance.

And short-term rental income?

Carried on habitually, furnished letting is a professional activity, taxed under a regime distinct from property income. To be settled with an adviser.

20% of the net gain, with a minimum of 3% of the sale price.

Will I be taxed twice?

No, if your country has a treaty with Morocco: the Moroccan tax is either exempted or credited in your country of residence.

Do I have to declare the property in my country?

As a general rule yes, even when it is exempt, for the calculation of the effective rate and, for France, for IFI purposes if you are liable to it.

Does inheritance tax apply in Morocco?

Morocco does not levy inheritance tax between direct-line relatives, but reduced registration duties on transfers on death. The applicable succession law depends on your situation; plan for it with a notary.

Taxation of the non-resident property investor

Moroccan property taxation is straightforward: duties on purchase, two annual taxes on the dwelling, a tax on rents and a tax on the capital gain at resale. Tax treaties prevent double taxation with most of our clients' countries of origin.

Sources checked: 2026-09

4%Registration duties
General Tax Code, art. 133
10% / 15%Gross rental income, final withholding rate
General Tax Code, art. 73: threshold of MAD 120,000 per year
20%Property gains tax (TPI)
General Tax Code, art. 73; minimum contribution 3% of the price
10.5%Municipal services tax, urban area
Law 47-06 on local taxation, on the rental value

On purchase

Three items are added to the price: registration duties (4% for a built dwelling), land registry fees (1.5%) and the notary's fees (around 1%, plus 20% VAT on the fees), to which fixed costs for stamps and certificates are added.

On a new dwelling sold by a developer, the price is subject to property VAT at the rate of 20%. The developer is liable for it; the buyer bears it in the price inclusive of tax. The Tifawin prices shown on this site are those communicated by the developer; whether they are exclusive or inclusive of tax is to be confirmed.

Item	Rate	Basis
Registration duties	4%	Purchase price
Land registry (conservation foncière)	1.5%	Purchase price
Notary's fees	≈ 1% + 20% VAT	Purchase price, per quotation
Stamps and certificates	Flat fees	A few hundred dirhams

Every year: housing tax and municipal services tax

Both taxes are based on the rental value of the dwelling, estimated by the tax authorities using a local grid (surface area, standard, location). A second home benefits neither from the 75% allowance nor from the temporary exemption reserved for a main residence.

The housing tax follows a progressive scale from 0 to 30% of the rental value. The municipal services tax is 10.5% of the rental value in urban areas and 6.5% in peripheral areas. A property let all year round is not subject to the housing tax, but remains subject to the municipal services tax.

On rents

Property income of individuals is taxed, at the taxpayer's option, either at a final withholding rate on gross income (10% if annual gross income is below MAD 120,000, 15% above) or under the progressive income tax scale after a 40% allowance.

Short-term furnished letting follows a different logic: carried on habitually, it constitutes a professional activity and is taxed as such. The applicable regime depends on turnover and on the operating model (direct or through a management company). This point must be settled with an adviser before letting.

On resale: the property gains tax (TPI)

The net gain (sale price less the purchase price, acquisition costs and documented works, with indexation) is taxed at 20%. A minimum contribution of 3% of the sale price is due even in the absence of a gain.

The main-residence exemption (occupation for at least six years, capped sale price) does not, by definition, apply to a non-resident who does not live there.

Tax treaties

Morocco has signed double-taxation treaties with France (treaty of 29 May 1970, amended by the 1989 protocol), Belgium, Switzerland, Spain and Italy, among others. All follow the same principle for real estate: the income and capital gains from a property are taxable in the State where it is located, hence in Morocco.

The owner's country of residence then eliminates double taxation by exemption or by tax credit, depending on the treaty. Moroccan income generally still has to be reported in the country of residence, even when exempt, in particular for the calculation of the effective rate.

Country of residence	Treaty with Morocco	Method for real estate
France	29 May 1970, protocol of 18 August 1989	Taxation in Morocco; tax credit in France
Belgium	Treaty in force	Taxation in Morocco; exemption with progression clause
Switzerland	Treaty in force	Taxation in Morocco; exemption with progression
Spain	Treaty in force	Taxation in Morocco; tax credit
Italy	Treaty in force	Taxation in Morocco; tax credit

The French real estate wealth tax (IFI) takes into account, for a French tax resident, property located abroad. To be examined with your adviser.

Frequently asked questions

Sources and methodology

General information verified on the date shown. For your situation, our team, a notary and a tax adviser confirm the applicable rates and timelines.